Condition is a big concern for many coin collectors because it can greatly affect the value of a coin. When you start a coin grading service, you are agreeing to objectively evaluate the aesthetic quality of coins. Once a coin has been graded, dealers and buyers can make better selling and buying decisions. Getting your own grading service off the ground will require some hard work, but can be a rewarding way to make a living.

1. Assess the marketplace to determine future goals for your coin grading service. Most coin collectors place coin grading services into three tiers, according to Coin Collecting Guide for Beginners, a website that demystifies the hobby. Examine other services to determine what you will do differently and what qualities you want to emulate. The Professional Coin Grading Service and Numismatic Guaranty Corporation are generally considered to be the most respected services.

2. Determine what kind of grading scale you will use. The Professional Coin Grading Service, for example, rates coins on a scale from 1 to 70. A coin with a grade of 1 is considered to be in poor condition and offers the grader only "identifiable date and type." The edges and features of this kind of coin have been worn so much that all the grader can do is identify the coin. A coin graded a 70 can be described to look "as struck, with full strike," meaning that its edges are crisp and the features on each side of the coin are virtually flawless. The scale you decide upon should use easy-to-remember combinations of letters or numbers that allows a wide range of description. After all, if a coin can be graded either "good" or "bad," the customer doesn't really get a lot of information.

3. Decide on a method of encapsulating the coins you grade. The plastic must be perfectly clear so collectors can see their coins, but the plastic must also be tough enough to prevent damage to the coin. The aesthetics of your coin holder are also important; many collectors display their coins in these holders and will be likely to patronize a service that sends coins back in attractive cases.

4. Establish a price schedule for your grading service. You must strike a balance; your service must cost enough that you'll make money, but must be inexpensive enough to make it worthwhile for collectors to send you their coins. You may also change your prices according to the turnaround time you promise. A customer can pay more in exchange for faster service.

5. Advertise your services in the numismatic community. Contact coin collector blogs and advertise in publications such as Coin World, a magazine for coin and currency collectors. Let customers know what sets you apart from the other grading services available to the coin community and to include your contact information and a mailing address. Once people know your services are available, all that is left is to grade the coins you receive and to send them back.

6. Complete any legal paperwork necessary to start a business in your state or municipality. The forms may vary, but you will probably need to register the name of the business, arrange to pay taxes and more. Consider consulting an attorney to make sure you've followed all the laws applicable in your state.

About the Author

Ethan Pendleton is a teacher and writer in Columbus, Ohio. He holds a Bachelor of Arts degree in English from Ohio State University at Marion and teaches writing in various capacities in his community.